Sunday, July 13, 2014

Can Mold on an Apprasiers Report Hold Up a Conventional Loan?

Everyone who gets a conventional loan is under the same impression that I
was when I was first approved for this more difficult to obtain loan. I
knew the nightmares associated with an FHA loan, and how strict they
are on their inspection process. I also knew an FHA loan would take a
heck of a lot longer to close on.

I jumped for joy when I learned that indeed my good credit score
helped land me a conventional loan!

Yippie! I sore in the air and click
my heels together.

All was gouing well. I found my dream house, everything looked peachy;
that is, until a rougue heat wave came into town causing the basement
to literally spore out in mold without anyone's knowledge.
The appraiser was set to come out to appraise the home, and this was
when the mold spores in the basement were discovered. There was no
denying this was an issue, but I figured no big deal? I have me a
conventional loan, all should be well, things go easier with a
conventional loan right? I have nothing to worry about right?

Wrong!

Once the underwriter got the appraisal in hand and noticed that the
appraiser had suggested that the mold be tested that was when my home
buying process went from easy to plopping me into the stress test
treadmill.

My lender passes the information on to me. This information is then
passed on to the attorney. Who then passes it on to the sellers
attorney, who then passes it on to the seller.

Thankfully the seller agrees to conduct this test.

Can you guess what happens next?

They find mold! Well duh! The mold thankfully is not the toxic kind, but due to the spore count it now needs remediation!

What the heck is that?
Oh, OK. You basically want me to hire someone to rip up sheet rock and
spray chemicals onto the walls. I get it, but dang, how irritating
because it was something we planned on doing anyway, after we closed on
the loan.

Sadly, unless it is done, there will be no loan!

Now we must once again, call our attorney, pass him this information, so he can get it on over to the seller.

$3,000 later we have come to an agreement to split the costs. How
terrific, paying into a home that is not even mine yet. Then we throw
into the mix that our interest rate lock is about to expire.

How triple terrific!

The whole ordeal was an absolute nightmare.

So to answer the question, can mold on an appraisal on a conventional loan cost you a deal?
Absolutely.

Conventional loans will overlook some things, but not mold. Take it from me!